CRA Expands EFT Tax Audits

CRA Expands EFT Tax Audits

CRA has announced that it’s increasing the number of international electronic funds transfers (EFT) tax audits that it will be conducting. Since January 2015 banks have been required to report all international EFTs over $10,000. CRA is ramping up its audit activities of these EFTs and as a result of it’s target of 100,000 EFT reviews many Canadian taxpayers can expect to receive an EFT tax audit letter in the coming year. The EFT tax audit letter will ask for details of the transfers including source and purpose of the transfer. You should not respond to any CRA tax audit letters without obtaining proper privileged Canadian tax lawyer representation. If you have unreported offshore assets or income you should consider a CRA voluntary disclosure before you receive a tax audit letter. This will allow you to avoid tax penalties and prosecution for tax evasion.